Office capacities pushed to breaking point as workers return to the Sydney CBD

Businesses are grappling with an influx of workers returning to the Sydney CBD that threatens to breach office capacities under social distancing restrictions.

Several major employers have told The Australian their offices will be able to accommodate only between 50 to 70 per cent of their workers under NSW’s 2sq m rule. Picture: AAP

Businesses are grappling with an influx of workers returning to the Sydney CBD that threatens to breach office capacities under ­social distancing restrictions.

Several major employers have told The Australian their offices will be able to accommodate only between 50 to 70 per cent of their workers under NSW’s 2sq m rule, even though they would prefer more to return.

Some companies are even planning to increase their floor space to meet distancing rules, confounding predictions that vast areas of city office space would be left vacant by the pandemic.

Westpac said it had been “gradually returning more people to our office” but its Sydney headquarters was already at 50 per cent of its pre-COVID numbers — its capacity limit while maintaining physical distancing.

“Most teams have a hybrid working model with people working part in the office and part remotely, depending on individual and business needs,” a Westpac spokesperson said.

Likewise, ANZ said it could accommodate only 50 per cent of its workforce in the office after ­“separating desks”.

Property Council of Australia chief executive Ken Morrison estimated many offices in Sydney and Melbourne would reach ­capacity at about 65 per cent of the workforce.

Occupancy data from the council indicated a gradual return to work in Sydney rising from 40 per cent in October to 45 per cent in December and January, where numbers plateaued as the state battled a fresh outbreak, though the numbers were expected to increase over time.

“Offices in the CBDs of Sydney and Melbourne … are likely to find it more challenging to reach full occupancy while physical distancing requirements still apply,” Mr Morrison said. “Office layouts in other capitals and fringe markets are more likely to comfortably accommodate full occupancy.”

Charter Hall chief executive David Harrison said companies eager to get “as many people back in the office as possible” had only just begun to realise the level of “utilisation” possible under restrictions. “(Typically) a 65-70 per cent utilisation is possible,” he said. “The banks feel they are a little restricted in office floor space but it’s also more about getting people in and out of lobbies.”

Mr Harrison said some companies could even be looking to increase their office space or risk never returning from flexible working arrangements.

“Charter Hall is an example; we are going to need to take more space in Sydney to accommodate the same number of people,” he said. “Organisations are going to need more space for collaboration and others will decide at 70 per cent capacity the office will need more space, so it will have a certain percentage working from home on a certain day.”

Sydney Business Chamber executive director Katherine O’Regan said office attendance had been “slow to pick up” as the city recovered from the recent infection scare over Christmas. “It’s taken a bit longer as people have come back out of the COVID fog.”

Ms O’Regan said increasingly workplaces were getting employees in only for collaborative work and allowing them to complete more solitary tasks at home.